February 4, 2020 MEMORANDUM To: From: Subject: Councilmembers Aly Pennucci, Supervising Analyst Council Bill 119726 – Limitation on Winter Evictions At the Full Council meeting on Monday, February 10, 2020, a discussion and vote on Council Bill (CB) 119726 is scheduled. CB 119726 would amend the “Just Cause Eviction Ordinance” (JCEO) (SMC 22.206.160) to provide a defense to an eviction 1 between November 1 and April 1. A landlord could still pursue an eviction order in court during this time, but this bill provides a defense for the tenant in the eviction proceedings. This memorandum: (1) describes the policy intent, (2) describes the City’s existing JCEO and how proposed bill would modify the JCEO, and (3) provides answers to a series of questions that have been raised by council offices. Policy Intent CB 119726 is intended to prevent physical evictions in winter months because eviction may lead to homelessness and sleeping outdoors increases the likelihood of developing exposure related conditions. In September 2018, the Seattle Women’s Commission and the King County Bar Association jointly published Losing Home: The Human Cost of Eviction in Seattle, finding that most of the evicted respondents in their study became homeless, with 37.5 percent completely unsheltered, 25 percent living in a shelter or transitional housing, and 25 percent staying with family or friends. In 2018, the King County Medical Examiner’s Office (KCMEO) investigated the deaths of 194 individuals presumed to be homeless. KCMEO concluded that, of those deaths, over half (n=107) occurred outside and approximately 62 percent (n=121) were attributable to nonnatural causes, such as drug overdoses, accidents (that includes hypothermia), suicide, homicide, and undetermined. 2 Current JCEO Regulations and CB 119726 The City’s JCEO requires landlords or property managers to state one of the approved reasons listed in the JCEO in order to proceed with an eviction. In addition to requiring that the eviction meets one of the approved reasons, the JCEO provides a defense to eviction if the landlord or 1 An eviction (also known as a Writ of Restitution) involves a tenant being ordered by the court to leave a residence. 2 https://www.kingcounty.gov/depts/health/examiner/annual-report/~/media/depts/health/medicalexaminer/documents/2018-annual-summary-homeless-deaths.ashx Page 1 of 12 property manager has not registered the unit under the City’s Rental Registration and Inspection Ordinance. CB 119726 would amend the JCEO by adding a defense to eviction if it would result in the tenant having to vacate the housing unit between November 1 and April 1. This defense would be available in an eviction hearing for only a subset of the just causes outlined in the City’s JCEO. Appendix A lists each of the just causes listed in the JCEO and indicates if this defense would be available to a tenant for each of the just causes. Responses to General Questions 1. Why limit evictions in winter months? While temperatures in Seattle may not regularly drop as low as some parts of the country, exposure related conditions such as hypothermia are not solely temperature related. Rather wind and precipitation also cause the body to rapidly lose heat, with wet clothing significantly increasing heat loss. Prolonged exposure to conditions below that of body temperature can lead to hypothermia. Alcohol and drug use also increase the possibility of exposure related conditions. 3 As Chart 1 illustrates, average temperatures in the Seattle area are lowest between November and April, with the lowest average temperatures in December, January, and February. Similarly, Chart 2 indicates, the average monthly amount of precipitation and number of days of precipitation increases during the same period, with November, December, and January seeing comparatively higher amounts and greater frequency of precipitation. 3 See https://www.mayoclinic.org/diseases-conditions/hypothermia/symptoms-causes/syc-20352682 and http://www.nationalhomeless.org/publications/winter_weather/Winter_weather_report.pdf for more discussion on these topics. Page 2 of 12 Chart 1: Average Monthly Temperatures in the Seattle Area 4 Average low in °F 47 43 39 52 36 37 JAN FEB MAR APR MAY JUN 55 54 JUL 52 AUG 47 SEP 41 38 OCT NOV DEC Chart 2: Average Monthly Precipitation Rates and Number of Days per Month with Precipitation in the Seattle Area Precipitation Rates 19 19 Average precipitation in inches 16 15 17 # of Days with precipitation 14 13 11 9 5.2 JAN 3.9 FEB 8 6 5 3.3 MAR 2.0 APR 1.6 MAY 1.4 JUN 0.6 JUL 0.8 AUG 5.0 1.7 SEP 5.4 3.3 OCT NOV DEC The U.S. Department of Housing and Urban Development (HUD) considers households paying more than 30 percent of their income for housing as “cost-burdened” with respect to housing. Cost-burdened renters are most likely to be at risk of homelessness due to evictions as one unexpected financial event can make it difficult to pay rent that leads to an eviction and depletes savings that can make it difficult to secure new housing. Table 1 provides information on the number of renter households who are considered cost burdened by income. 4 Information collected on 1/20/2020 from the National Weather Service (https://w2.weather.gov/climate/index.php?wfo=sew) and from U.S. Climate Data (https://www.usclimatedata.com/climate/seattle/washington/united-states/uswa0395) Page 3 of 12 Table 1: Renter Households Rent Burdened by Income Level (%AMI =Area Median Income) Income Level of Rent Not Rent Total % Rent 5 Household Burdened* Burdened Households Burdened (%AMI) ≤30% AMI >30% to ≤ 50% AMI >50% to ≤80% AMI >80% to ≤ 100% AMI >100% AMI Total 30,255 18,920 11,040 4,880 2,900 67,995 10,105 4,490 11,460 12,255 57,420 95,730 40,360 23,410 22,500 17,135 60,320 163,725 75.0% 80.8% 49.1% 28.5% 4.8% 41.5% *Includes those paying more than 30% of income for rent Source: 2012-2016 American Community Survey Comprehensive Housing Affordability Survey (CHAS) data 2. CB 119726 provides a defense during eviction proceedings for a tenant if the eviction would result in the tenant having to vacate the housing unit between November 1 and March 1. How will this play out in the eviction proceedings? A tenant or their attorney will have to raise this as defense in response to the landlord’s claim for the right of possession during the eviction proceedings in Superior Court. Presumably a judge will either rule in favor of the tenant and the landlord could refile a complaint to obtain possession after April 1, or the judge will simply delay execution of the writ of restitution until after April 1. 3. Would CB 119726 prevent a landlord from pursuing an eviction in court? Would it allow a tenant to live rent free between November 1 and April 1? Providing this defense does not prevent a landlord or property manager from moving forward with eviction proceedings, but instead provides a defense to the tenant if enforcement of any eviction order issued by King County Superior Court would occur between November 1 and April 1. In most cases, this would likely delay the physical eviction. This could provide time for the tenant to remedy the conditions leading to the pursuit of eviction and, if the landlord is willing, negotiate continued tenancy, or time to secure other housing. When this defense requires that a landlord delay evicting tenant(s), the tenant(s) would still be responsible for paying rent during the delay and any delinquency in paying rent would result in additional fees and would further damage the tenants rental record and credit. 5 Information on the incomes associated with the % of AMI can be found here: https://www.seattle.gov/Documents/Departments/Housing/PropertyManagers/IncomeRentLimits/2019%20RHP% 20Income%20Limits.pdf. Page 4 of 12 4. How many evictions occur between Nov 1 and April 1? The most recent data available is from the 2017 eviction records collected and analyzed by the authors of the Losing Home report. This data reveals that: • The number of evictions, on average, filed by month is approximately 100 cases, with a high of 127 in March 2017 and a low of 83 in April 2017. Approximately 40 percent of eviction cases filed in 2017 were filed in November, December, January or March. Eviction Cases Filed in 2017 in Seattle 140 120 100 80 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • During that same period (November – March) approximately 340 Writs of Restitution were ordered. This ranged from a low of 49 ordered in February and a high of 83 in March 2017. • Landlords can serve a notice to vacate prior to filing an eviction complaint with the Court; the number of tenants who vacate the unit prior to filing is unknown. 5. When a tenant receives a 14-day pay or vacate notice, what information must be included in the notice? State Requirements: RCW 59.18.057 requires that every 14-day notice to pay or vacate includes the following information 6: • • • Total financial obligation alleged by the landlord (rent, utilities and other periodic charges due); Information about how payment can be made; and Reference to the Washington State Attorney General’s website, including a note about resources for tenants facing eviction and reference to the 2-1-1 service. 6 A template for the required notice is available in multiple languages on the State Office of Attorney General: https://www.atg.wa.gov/landlord%E2%80%90tenant. Page 5 of 12 City Requirements: Subsection 22.206.180.K in the Seattle Municipal Code requires that any notice to terminate a tenancy must include reference to how the tenant can access information on the rights and obligations of tenants and landlords. The Seattle Department of Construction and Inspections has issued a draft Director’s Rule that specifies that such notices must include the following: “If you need help understanding this notice or information about your renter rights, call the Renting in Seattle Helpline at (206) 684- 5700 or visit the web site at www.seattle.gov/rentinginseattle.” 6. What resources are available to provide financial assistance to tenants who are at risk of eviction due to nonpayment of rent? A description of some of the resources that provide financial assistance to tenants facing eviction are described below. State Resources: • Landlord Mitigation Program: RCW 43.31.605 provides landlords with an incentive and added security to work with tenants receiving rental assistance. The program offers up to $1,000 to the landlord in reimbursement for some potentially required move-in upgrades, up to fourteen days’ rent loss and up to $5,000 in qualifying damages caused by a tenant during tenancy. • Tenancy Preservation: RCW 59.18.410(3) and 43.31.605(c)) established a program to reduce homelessness by providing relief to low-income tenants facing eviction for nonpayment of rent. In court-approved cases, Commerce will issue a temporary loan to landlords to preserve tenancy. Tenants have up to 90 days to repay the loan. • The Office of Attorney General also lists on their website potential resources to assist tenants: https://www.atg.wa.gov/residential-landlord-tenant-resources. City Resources: • The City appropriated $3.3 million in 2020 to supportsprograms that provide emergency rental assistance to qualifying tenants who have received a 14-day pay or vacate notice. The programs can include case management and people accessing the services through these organizations may receive help with outstanding rent bills, financial assistance for relocation, and other support to sustain their housing. The following organizations are receiving funding in 2020: Homeless Prevention Funding from HSD in 2020 Contracted Agency CHIEF SEATTLE CLUB EL CENTRO DE LA RAZA Page 6 of 12 LIFELONG AIDS ALLIANCE MUSLIM HOUSING SERVICE REFUGEE WOMENS ALLIANCE SEATTLE INDIAN HEALTH BOARD SOCIETY OF ST VINCENT DE PAUL COUNCIL SOMALI YOUTH & FAMILY CLUB UNITED INDIANS OF ALL TRIBES FOUNDATION CATHOLIC COMMUNITY SERVICES OF WESTERN WASHINGTON INTERIM COMMUNITY DEVELOPMENT ASSOCIATION NEIGHBORHOOD HOUSE YWCA OF SEATTLE-KING COUNTY Other • Home Base: Home Base is a program offered by the United Way of King County in partnership with the King County Bar Association (KCBA) that, using an initial investment from the Seattle Mariners, provides assistant to people facing eviction. The program: o Provides legal representation through KCBA’s Housing Justice Project, which helps low-income clients facing eviction; o Provides one-time emergency funds to pay the back rent causing the eviction; and o Offers the guidance of a caseworker to prevent the person or family from facing eviction again. From April to December 2019 Home Base provided approximately $1 million in payments to help tenants facing eviction in Seattle that resulted in 260 saved tenancies, and 31 extended move-outs. This represents 535 individuals served and breaks down to about $1900/individual. 7. What discretion do the courts have in deciding an eviction case when the cause for eviction is due to nonpayment of rent? In 2019, the State amended the Landlord-Tenant Act; this included providing a 14 day rather than a 3 day notice to pay or vacate after nonpayment of rent and provided some judicial discretion in the eviction proceedings. Per RCW 59.18.410(2) a tenant has up to five days after a judgment is ordered by the court to pay the rent due and associated fees to restore tenancy. RCW 58.18.410(3) provides that, following entry of judgment for the landlord over the tenant for nonpayment of rent, at the show cause hearing or at trial or upon a subsequent motion of the tenant, the court may stay a writ of restitution upon good cause based upon consideration of the following: Page 7 of 12 • the tenant's willful or intentional default or failure to pay rent; • payment history of the tenant; • ability of tenant to timely pay judgment; • whether nonpayment was caused by exigent circumstances beyond tenant's control and are not likely to recur; • if tenant is otherwise in substantial compliance with the lease; • hardship on the tenant if evicted; and • conduct related to other notices within the last six months. The tenant has the burden of proof to be granted relief under this provision, and if relief is sought at the time of the show cause hearing the court must hear the matter at that time or as soon as possible to avoid unnecessary delay or hardship. A tenant who has been served with three or more notices to pay or vacate within 12 months prior to the current notice to pay or vacate, may not seek relief through the exercise of this judicial discretion. 8. Does the JCEO apply to fixed-term leases that terminate on a specific date with no right to hold over? Fixed-term leases that terminate on a specific date are generally subject to the JCEO when the lease term is in effect. The new provisions proposed in CB 119726 would provide a defense to a tenant during the term of a terminating lease. Attachments: A. Appendix A: Table of just causes and applicability of CB 119726 Page 8 of 12 Appendix A The reasons for termination of tenancy listed below, and no others, shall constitute just cause under this Section 22.206.160: Would the limit on wintertime evictions in CB 119725 apply? a. The tenant fails to comply with a 14 day notice to pay rent or vacate pursuant to RCW 59.12.030(3); a ten day notice to comply or vacate pursuant to RCW 59.12.030(4); or a three day notice to vacate for waste, nuisance (including a drug-related activity nuisance pursuant to chapter 7.43 RCW), or maintenance of an unlawful business or conduct pursuant to RCW 59.12.030(5); In part. An eviction could still proceed if the reason for termination is due to the tenant’s failure to comply with a three day notice to vacate for a drugrelated activity nuisance pursuant to chapter 7.43 RCW or maintenance of an unlawful business or conduct pursuant to RCW 59.12.030(5) b. The tenant habitually fails to pay rent when due which causes the owner to notify the tenant in writing of late rent four or more times in a 12 month period; Yes c. The tenant fails to comply with a ten day notice to comply or vacate that requires compliance with a material term of the rental agreement or that requires compliance with a material obligation under chapter 59.18 RCW; Yes d. The tenant habitually fails to comply with the material terms of the rental agreement which causes the owner to serve a ten day notice to comply or vacate three or more times in a 12 month period; Yes e. The owner seeks possession so that the owner or a member of the owner's immediate family may occupy the unit as that person's principal residence and no substantially equivalent unit is vacant and available in the same building, and the owner has given the tenant at least 90 days' advance written notice of the date the tenant's possession is to end…; No Page 9 of 12 f. The owner elects to sell a single-family dwelling unit and gives the tenant at least 90 days' written notice prior to the date set for vacating, which date shall coincide with the end of the term of a rental agreement, or if the agreement is month to month, with the last day of a monthly period. The Director may reduce the time required to give notice to no less than 60 days if the Director determines that providing 90 days' notice will result in a personal hardship to the owner. Personal hardship may include but is not limited to hardship caused by illness or accident, unemployment, or job relocation. For the purposes of this Section 22.206.160, an owner "elects to sell" when the owner makes reasonable attempts to sell the dwelling within 30 days after the tenant has vacated, including, at a minimum, listing it for sale at a reasonable price with a realty agency or advertising it for sale at a reasonable price in a newspaper of general circulation. No, provided that the tenant received at least 90 days' written notice. g. The tenant's occupancy is conditioned upon employment on the property and the employment relationship is terminated; Yes h. The owner seeks to do substantial rehabilitation in the building; provided that, the owner must obtain a tenant relocation license if required by Chapter 22.210 and at least one permit necessary for the rehabilitation, other than a Master Use Permit, before terminating the tenancy; Yes i. The owner (i) elects to demolish the building, convert it to a cooperative, or convert it to a nonresidential use; provided that, the owner must obtain a tenant relocation license if required by Chapter 22.210 and a permit necessary to demolish or change the use before terminating any tenancy, or (ii) converts the building to a condominium provided the owner complies with the provisions of Sections 22.903.030 and 22.903.035; Yes j. The owner seeks to discontinue use of a housing unit unauthorized by Title 23 after receipt of a notice of violation. The owner is required to pay relocation assistance to the tenant(s) of each such unit at least two weeks prior to the date set for termination of the tenancy, at the rate of: No k. The owner seeks to reduce the number of individuals residing in a dwelling unit to comply with the maximum limit of individuals allowed to occupy one dwelling unit, as required by Title 23: Page 10 of 12 No l. 1) The owner seeks to reduce the number of individuals who reside in one dwelling unit to comply with Yes the legal limit after receipt of a notice of violation of the Title 23 restriction on the number of individuals allowed to reside in a dwelling unit, and: a) The owner has served the tenants with a 30 day notice, informing the tenants that the number of tenants exceeds the legal limit and must be reduced to the legal limit; provided that no 30 day notice is required if the number of tenants was increased above the legal limit without the knowledge or consent of the owner; b) After expiration of the 30 day notice required by subsection 22.206.160.1.1.a ((above)), or at any time after receipt of the notice of violation if no 30 day notice is required pursuant to subsection 22.206.160.1.1.a, the owner has served the tenants with and the tenants have failed to comply with a ten day notice to comply with the maximum legal limit on the number of occupants or vacate; and c) If there is more than one rental agreement for the unit, the owner may choose which agreements to terminate; provided that((,)) the owner may either terminate no more than the minimum number of rental agreements necessary to comply with the legal limit on the number of occupants, or, at the option of the owner, terminate only those agreements involving the minimum number of occupants necessary to comply with the legal limit. m. The owner seeks to discontinue use of an accessory dwelling unit for which a permit has been obtained pursuant to Sections 23.44.041 and 23.45.545 after receipt of a notice of violation of the development standards provided in those sections. The owner is required to pay relocation assistance to the tenant household residing in such a unit at least two weeks prior to the date set for termination of the tenancy, at the rate of: 1) $2,000 for a tenant household with an income during the past 12 months at or below 50 percent of the county median income, or 2) Two months' rent for a tenant household with an income during the past 12 months above 50 percent of the county median income; No n. An emergency order requiring that the housing unit be vacated and closed has been issued pursuant to No Section 22.206.260 and the emergency conditions identified in the order have not been corrected; o. The owner seeks to discontinue sharing with a tenant of the owner's own housing unit, i.e., the unit in which the owner resides, seeks to terminate the tenancy of a tenant of an accessory dwelling unit authorized pursuant to Sections 23.44.041 and 23.45.545 that is accessory to the housing unit in which the owner resides, or seeks to terminate the tenancy of a tenant in a single-family dwelling unit and the owner resides in an accessory dwelling unit on the same lot. This subsection 22.206.160.C.1.o does Page 11 of 12 No not apply if the owner has received a notice of violation of the development standards of Section 23.44.041. If the owner has received such a notice of violation, subsection 22.206.160.C.1.m applies; p. A tenant, or with the consent of the tenant, the tenant's subtenant, sublessee, resident, or guest, has engaged in criminal activity on the premises, or on the property or public right-of-way abutting the premises, and the owner has specified in the notice of termination the crime alleged to have been committed and the general facts supporting the allegation, and has assured that the Seattle Department of Construction and Inspections has recorded receipt of a copy of the notice of termination. For purposes of this subsection 22.206.160.C.1.p, a person has "engaged in criminal activity" if the person; 1) Engages in drug-related activity that would constitute a violation of chapters 69.41, 69.50, or 69.52 RCW, or 2) Engages in activity that is a crime under the laws of this state, but only if the activity substantially affects the health or safety of other tenants or the owner. Page 12 of 12 No